In: Accounting
Question 2 (Note this question is from the Week 6 Tutorial) Thomas, a poor university student, and his millionaire Dad enter into an arrangement where Thomas agrees that he will keep the front and backyards of the family property mowed, and he will ‘do a bit’ to keep the gardens looking tidy. In return, his Dad agrees to pay him a weekly allowance of $200. His Dad had previously used a garden contractor to do the job and paid him $350. They live on a large property, and the mowing alone takes half a day a week. After four weeks, Thomas’s Dad tells him that he can’t afford to pay $200 a week. He says that Thomas should be doing the work for nothing, as it is the responsibility of the whole family to look after the property; besides, he says, Thomas is getting free board and lodging. Advise Thomas on whether there is a contract between him and his Dad which the court will enforce. Required: Answer this question using the IRAC * method. (Word limit: Minimum of 300 words. Maximum of 400 words)